Escaping the "Snowflake Tax": How we cut data costs by over 50% at New Relic

New Relic undertook a significant migration from Snowflake to an open, cloud-native architecture using Apache Iceberg, Amazon S3, Apache Spark, and other open-source technologies to address escalating costs and vendor lock-in issues. By decoupling storage, compute, and query layers, the company achieved a 35-52% reduction in data platform costs while ensuring scalable and efficient operations. The migration involved running both systems in parallel, ensuring row-level data parity before transitioning consumers, and utilizing full-stack observability tools to maintain visibility and reliability throughout the process. The shift allowed New Relic to operate a more flexible and cost-effective data platform that can adapt to future technological advancements without being tied to a single vendor.

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